HP plans 8pc reduction in global workforce over next three years

16 Sep 2008

The world’s largest IT company has rattled the industry with its announcement that it plans to cut 24,600 jobs, or 7.5pc of its workforce globally, over the next three years.

Once completed, the restructuring programme is expected to result in annual net cost savings of about $1.8 billion, and HP will record a charge of €1.7 billion in the fourth quarter of fiscal 2008 relating to the restructuring.

HP employs 4,000 people in Ireland but so far no information has been released to suggest how operations will be affected by the restructuring programme.

A spokesperson for HP in Ireland said on Newstalk 106FM this morning there are no indications yet as to how this affects the 4,000 people employed by HP in Ireland.

HP’s main operation is the manufacturing plant at Leixlip, Co Kildare, where cartridges for inkjet printers are made. It also has a software and localisation centre in Galway, sales and services operations and a bank.

“HP now has the broadest technology capabilities in the market to meet customer needs today and in the future,” said Mark Hurd, HP chairman and chief executive officer. “HP has a strong track record of making acquisitions and integrating them to capture leading market positions. We will deliver on the promise of HP and EDS for our customers and shareholders.”

In its statement HP said it expects to replace roughly half of the positions cut over the next three years to “create a global workforce that has the right blend of services delivery capabilities to address the diversity of its markets and customers worldwide.”

HP’s strategic plan comes at a time when enterprises are facing an explosion of digital content, aging infrastructure and constrained resources.

“Consequently, chief information officers must rethink their technology environments and choose to manage it themselves, outsource it or receive services through the cloud. With EDS, HP is a leading globally scaled service provider that combines innovation, a stronger product portfolio and expanded service delivery capabilities,” the statement said.

By Sorcha Corcoran